Negotiating With The Cuban Sugar Industry A No Way Out Case Study Solution and Analysis
Negotiating With The Cuban Sugar Industry A No Way Out Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services including; collecting information, processing info and communication services. Major company segments of the business include; books, regulars, consultancy and circulation. The business has a huge product portfolio and its significant items consist of books, regulars, online media, exhibits, research reports and so on. Negotiating With The Cuban Sugar Industry A No Way Out Case Study Solution has actually ended up being a specialized information company and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Negotiating With The Cuban Sugar Industry A No Way Out Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Negotiating With The Cuban Sugar Industry A No Way Out Case Study Solution has certain strengths that can be used to reduce the threats, conquer the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Negotiating With The Cuban Sugar Industry A No Way Out Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong monetary position allows the company to consider a number of development opportunities with no fear of raising fund externally.
Together with the strengths, the business has specific weaknesses which might increase restrictions for the company in implementing its development program. The weak points of Negotiating With The Cuban Sugar Industry A No Way Out Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Although, the growth of the publishing market is decreasing since 2008, impacting Negotiating With The Cuban Sugar Industry A No Way Out Case Study Help as well, but the growth could be revived by availing particular chances presented in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented particular threats to Negotiating With The Cuban Sugar Industry A No Way Out Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Negotiating With The Cuban Sugar Industry A No Way Out Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the market along with existence of high competition increases the danger of losing the consumer base.
Due to lack of information, the financial ratios of CMP could not be calculated. It might be examined from the Appendix III that the annual overall profits of Negotiating With The Cuban Sugar Industry A No Way Out Case Study Solution during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is quite effective in attracting a big number of customers at a potential price.
In addition to it, the 2nd graph which shows the yearly growth in the Negotiating With The Cuban Sugar Industry A No Way Out Case Study Analysis overall properties, shows that the company is quite efficient in including value to its properties through its profits. The development in possessions reveals that the total worth of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business using the offered data could be the analysis regarding the distribution of total revenues of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sections with a prospective growth to accomplish its future development goal.
PESTEL analysis might be carried out to discover the different external forces impacting the performance of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the overall political forces affecting Negotiating With The Cuban Sugar Industry A No Way Out Case Study Solution company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out helpful products and so on. China has the highest population worldwide with a high population development, showing the increasing number of customers of the Negotiating With The Cuban Sugar Industry A No Way Out Case Study Solution. The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the altering customer choices.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Enhancement of science and technology along with the rise of digital publishing could reduce the need for the CMP products, if specific actions would not be taken soon.
Ecological forces affecting Negotiating With The Cuban Sugar Industry A No Way Out Case Study Analysis includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing market. The existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement items for the published files is the documents provided in the virtual libraries on certain websites. The altering customer preferences towards digital learning increase the danger of substitution for the industry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Negotiating With The Cuban Sugar Industry A No Way Out Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Negotiating With The Cuban Sugar Industry A No Way Out Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Negotiating With The Cuban Sugar Industry A No Way Out Case Study Help and CIP. It is also one of the popular players in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose demand of its items in the market.
As the preferences are shifting towards digital publishing and the company require an instant option to avoid the declining industry growth. The business could also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business must first gathers the data associated with the consumer demand, the potential markets, the federal government policies and the data related to the competitors provided in the market. After that, the company needs to choose one prospective section for its preliminary offering. It ought to collect research that how it might differentiate its digital publishing from the existing competitors' items. After all the steps above the company need to go for the preliminary offering. If the preliminary offering proves a success, the company should go for the other markets. In this method the business would have the ability to execute its digital publishing program.
The growth of the publishing market is declining since 2008, showing a hazard to the company's long term presence, however the circumstance can be managed by thinking about an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.